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THE OPTIONS COURSE STRATEGY ROAD MAPS Long Butterfly Spread Road Map In order to place a long butterfly spread, the following 14 guidelines  should be observed: 1. Look for a sideways-moving market that is expected to remain within  the breakeven points. 2. Check to see if this stock has options available. 3. Review options premiums per expiration dates and strike prices.  Make sure you have enough option premium to make the trade worth- while, especially considering the commission fees of a multicontract  spread. 4. Investigate implied volatility values to see if the options are over priced or undervalued. 5. Explore past price trends and liquidity by reviewing price and volume  charts over the past year. 6. A long butterfly is composed of all calls or all puts with the same expi ration. Buy a lower strike option (at the support level), sell two higher  strike options (at the equilibrium point), and buy one even higher op tion (at the resist